Visa Inc. (V), one of the most advanced payments processing networks worldwide, recently announced the extension of Visa Checkout service to a total 16 countries by 2015.
Visa Checkout is an online service offered by Visa that allows customers to make online payments securely using a computer, tablet or mobile phone. The customers, once registered with Visa, will have a secure account where details like their shipping and payment information will be protected by the company.
This will make online shopping at merchants offering Visa Checkout much easier for the consumers. Shoppers will be able to complete their purchases by simply logging into their account, entering their username and password and clicking on the purchase button.
After the success of the Visa Checkout service in the U.S., Canada and Australia, tested over a period of seven months, Visa now intends to expand the service in 16 new destinations by 2015. These new markets targeted by the company include Argentina, Brazil, Chile, China, Colombia, Hong Kong, Peru, Malaysia, Mexico, New Zealand, Singapore, South Africa and the United Arab Emirates where it expects to have a strong foothold by 2015.
Visa has already gained more than 3 billion customers who have signed up for the service. The company also recorded that 75% of the people are active users and the number of repeat users has grown 16 times since it was launched. Moreover, the merchants have noticed that 40% of the Visa Checkout customers are new users.
Visa Checkout had been steadily gaining momentum since it was launched in 2014. The consumers have been very satisfied with the simple and easy payment solution offered by this service for shopping online.
Presently the service is restricted to the U.S, Canada and Australia. New users of the payment system will only be able to buy from merchants in the above-mentioned countries that ship globally. As Visa Checkout expands, new merchant partnerships are expected to be signed globally. This will allow consumers to purchase from the local vendors with provisions for the Visa Checkout service going forward.
Visa currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Better-ranked stocks from the financial transaction services sector include Fiserv, Inc. (FISV), Global Payments Inc. (GPN) and Ingenico S.A. (INGIY). Each of these stocks holds a Zacks Rank #2 (Buy).
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